HB 1271 Indiana House · 2026 Regular Session

Payment of health claims.

Summary
Requires a hospital to: (1) disclose information concerning payment assistance programs; (2) post signs concerning the programs in specified locations of the hospital; and (3) make information concerning the programs available to individuals through the hospital's patient portal. Requires a hospital to make a reasonable effort to notify individuals of available payment assistance programs before beginning a collection action against the individual. Prohibits the use of downcoding in a specified manner. Prohibits a provider from using an automated process, system, or tool to submit a health benefits claim without the review of a provider or other person involved in the development of the claim for submission. Prohibits an insurer that issues a policy of accident and sickness insurance (insurer) and a health maintenance organization from retroactively reducing the reimbursement rate for any CPT code. Sets forth limitations on the time frame in which an insurer and a health maintenance organization: (1) may request repayment of an overpayment, adjust a subsequent claim, recoup a paid claim, or retroactively audit a paid claim; and (2) is required to correct a payment error to a provider. Provides that if an insurer or a health maintenance organization recoups payment from a provider due to an error in coordination of benefits, the provider may submit a claim for the same services to the appropriate insurer or health maintenance organization.
Bill status signed all 5 stages cleared
Introduction
Jan 2026
Committee Review
Feb 2026
House Passage
Feb 2026
Senate Passage
Feb 2026
Signed into Law
Mar 2026
Introduced Jan 6, 2026 Signed Mar 4, 2026
Maddy AI version diff · 5 comparisons

What changed between versions

House Bill (H) House Bill (S) · 5 edits
MODERATE
The bill was amended to clarify that hospitals must make a reasonable effort to notify patients of financial assistance before collecting on medical debt. It also updated the definition of 'collection action' to specifically include 'litigation for medical debt' and expanded the required times for providing payment assistance notices to include discharge and initial billing statements.
Scope change
The scope of the bill remains focused on hospital payment assistance and insurer/provider billing practices, but the specific requirements for patient notification have been broadened.
REQUIREMENT

Changed the hospital notification requirement from a mandatory action to a 'reasonable effort' to notify patients about available payment assistance before starting collection actions.

Added two new required times for providing written payment assistance notices: at the time of discharge and with the initial billing statement.

Removed a requirement to provide payment assistance notices during registration or intake for inpatient or outpatient services, replacing it with the new discharge and billing statement requirements.

DEFINITION

Updated the definition of 'collection action' to explicitly include 'litigation for medical debt' alongside the sale or assignment of bills.

TIMELINE

Updated the effective date for the rulemaking regarding out-of-pocket expense credits to July 1, 2026, and added a specific effective date of July 1, 2026, for the bill's provisions.

Floor votes · Senate Feb 24, 2026 · House Feb 2, 2026

How they voted

451
Passed · 3 other
Total votes 49
Feb 24, 2026
D Democratic9
7 Yea 2
77% Yea
R Republican40
38 Yea 1 Nay 1
95% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
31
Key actions
13
Committee
6
Amendments
2
Mar 4, 2026
Signed into law
Signed by the Governor
executive
Feb 27, 2026
Upper · Passed
Signed by the President Pro Tempore
upper
Feb 27, 2026
Upper · Passed
Signed by the President of the Senate
upper
Feb 26, 2026
Lower · Passed
House concurred with Senate amendments; Roll Call 391: yeas 87, nays 0
lower
Feb 26, 2026
Lower · Passed
Signed by the Speaker
lower
Feb 24, 2026
Upper · Passed
Third reading: passed; Roll Call 248: yeas 46, nays 1
upper
Feb 23, 2026
Upper · Passed
Amendment #4 (Brown L) prevailed; voice vote
upper
Feb 19, 2026
Committee
Pursuant to Senate Rule 68(b); reassigned to Committee on Rules and Legislative Procedure
upper
Feb 19, 2026
Upper · Passed
Committee report: Rules Committee Report; adopted voice vote
upper
Feb 19, 2026
Upper · Passed
Committee report: amend do pass, adopted
upper
Feb 12, 2026
Committee
Pursuant to Senate Rule 68(b); reassigned to Committee on Appropriations
upper
Feb 12, 2026
Upper · Passed
Committee report: amend do pass, adopted
upper
Feb 2, 2026
Lower · Passed
Third reading: passed; Roll Call 179: yeas 85, nays 0
lower
Jan 29, 2026
Lower · Passed
Amendment #4 (McGuire) prevailed; voice vote
lower
Jan 20, 2026
Lower · Passed
Committee report: amend do pass, adopted
lower
4 primary · 4 co-sponsors

Sponsors